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I made my first trade when I was 18. It was a Canadian mining stock through a Scottrade account. I made three mistakes that were both using the same rationale:

1. The stock was 'cheap' only $0.10 2. The commissions at Scottrade were the cheapest, at that time. 3. I went all in on one idea.

“That cotton trade was almost the deal breaker for me. It was at that point that I said, ‘Mr. Stupid, why risk everything on one trade? Why not make your life a pursuit of happiness rather than pain?’” – Paul Tudor Jones

Sometimes cheap is expensive.

Now at the time my capital was limited and my theory was I only needed this stock to double and I would be good to go. But like with many things you simply don't know what you don't know. Back then Twitter, StockTwits and YouTube trading gurus were not around. I sound old saying this and maybe I am.

2009 is when I became a 'Professional' - trading for a firm as a futures trader. It was there where I learned how to properly look at the markets. And of course over the years you pick up a few things but the core concepts will always remain the same. This week speaking to students someone said an option was 'expensive' - which, could be true. But what they meant is that it was $900 a contract and that was expensive.

The lesson here and for all investors is this: It doesn't matter how much it costs what matters is what you can sell it for.

As the markets consolidate after a nice rally this week my plan is to sit back and wait. I think we've got some more selling to do and if NFLX earnings are any sign of what's to come (the selling right after it $400) then we should be in for some great trading into November. By the way, the title of that Barrons article in that link above is a reason why I, and you as well, should never pay attention to an opinion based on feel to invest or place a trade.

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